In a report dated Sept 9, OCBC Investment Research said the average occupancy rate of Singapore hotels for the first seven months of the year was 69.5%, up 18.9 percentage points (ppt) y-o-y but still 17 ppt below the average occupancy rate of 86.4% in the same period in 2019. However, average day rates (ADR) for the first seven months of this year had surpassed its pre-Covid levels to $220.9, boosted by strong travel demand, inflation and a tighter labour market.
In 1H2022, hotel S-REITs posted the sharpest q-o-q recovery in portfolio RevPAR (revenue per available room) since the onset of the pandemic, said DBS in an Aug 2 report following the results reporting season for REITs. DBS says this surpassed its “recovery trajectory that estimates recovery to hit 70% of pre-pandemic levels in FY2022”.
The DBS report says the performance was led by a global recovery in both occupancy and room rates, except for Japan and China. Markets that have seen a three to fourfold surge in RevPAR from a low base included large domestic markets like the UK and US, which were building on a strong summer travel season, the report adds.
